 |
|
|
Student loan FAQ
| «
Are student loans pre or post tax and NI
» |
|
Are student loans deducted from pay before or after the tax and National insurance has been calculated and deducted? |
|
Student loan repayment deductions are made from the net pay after tax and national insurance has been calculated and deducted but the calculation of the deduction is based on the gross pay (before tax and NI) for the pay period. No deduction will be made if the statutory threshold is not exceeded. |
| «
Repayment time limit
» |
|
What time limit, if any, is there for the repayment of a student loan? |
|
Once you reach the age of 65 the student loan ceases regardless of whether it has been fully paid or not. If you should die the student loan dies with you; it is not classed as a debt on your estate. If you never earn more than the threshold earnings and therefore never make a payment, you'll not be requested to make any 'additional' payments no matter how long ago the loan was made. |
| «
Redundancy pay and student loans
» |
|
Will a student loan deduction be made from redundancy pay? |
|
Only pay that is subject to a national insurance deduction is classed as pay that a student loan deduction can be taken from. As redundancy pay is free from both tax and national insurance there will be no student loan taken from it. |
|
